Ctp N V

And good morning and thanks for joining on this Q3 call. Talk about the results and the things we have been busy with over the past couple of months and maybe start with talking about CTP. A growth company, we enjoy growth, we like growth and we see growth opportunities to continue, develop, build. for our clients and secure new business. So growth comes from supply chain professionalization if you like. So we have seen obviously many events over the past decade and you could maybe conclude or say that this whole supply chain becomes more professional so companies adapt or adjust to different market circumstances or different events which we have seen over the past years and we benefit from that in different ways. It's one supply chain. Second is nearshoring. We continue to see manufacturing coming to Central Europe for the region, for Western European countries as well. But we also see growth in the markets of Central Europe, so the consumer spending. Maybe when I came here first in 1995, 30 years ago, Central Europe was about low-cost manufacturing. In the meantime, of course, with all the GDP growth which we have seen over the past decades, the local population, have money to spend and they do spend and obviously that results in demand for property warehouse for example e-commerce etc we see also growth coming from defense industry as well as talk about it but in the meantime we've also seen some some concrete demands in our german portfolio for instance there's multiple companies who are involved in the defense industry and they ask for more space that's good so we continue to see mostly from existing clients strong demand from a diverse tenant base, including retailers, pet food manufacturers, semiconductor business, but also demand from automotive related industry, maybe moving from West Europe to Central Europe, to Eastern Europe, or Asian companies coming in and set up business in Europe for the European market. In numbers, we signed 1.6 million square meters over the past 9 months and 25, which is 6% up compared to what it was in 2024 six percent plus and we have done that at six percent more rent so our rent average per square meter per month has grown with six percent again we look also forward to continue this trend and typically we close a lot during the last part the fourth quarter of the year as we've done last year in the years before so from schedule to close more leases by the end of the year Stable, consistent growth. Two-thirds of our business comes from existing clients, our partners, long-term clients, loyal clients. It's also them who helped us grow in new markets. We get 99.8% of all the rent which we charge is being paid, retention rate 85%, and 80% of all the new construction happens in existing business parks. Our integrated business model combines the operator, so talk about how we break down our different business lines, the operator is the income producing part of the business, those are all the properties which we have built over the past years is good for 718 million euro of rental income, around that number. Second activity, the developer, with 2 million square meter of properties under construction, with a land bank of 26 million square meter. Those are the people who are busy with building property, constantly improving the quality of the property, come up with different property concepts and innovations, make properties that consume less energy, less maintenance cost. You want generic design buildings because the building will last beyond the lease term of the first tenant, etc. Especially nowadays with so many changes going on, it's very important that you get the property right, the location right, and to make sure that you have amenity services available. utilities, electricity on site in those business parks and make sure that your clients can grow. And that's what happens. The last, if you break it down and say, okay, we have this operator, income producing, developer, construction, the last bit, maybe most exciting part is growth engine. We have been growing beyond the markets where we are active. Remember the IPO we did also to raise capital, to get access to capital, affordable, cheap capital to grow our business beyond that. that's what we continue to do this year we delivered 500 000 square meter a bit more half a minute square meter mostly pre-leased we do 10.3 yield on cost and who are those tenants it's lpp for bucharest hitachi for bernal japanese client long-term client but also zoom lion in tatabania in hungary is one of our chinese clients thank you very much to the clients for the continuous support commitment and loyalty and thanks for working with us. We've been able to complete these projects on time and in budget. Again, end of the year normally is a lot of projects come to the market. We have 2 million square meters under construction, 2 million. Not all of that will be complete by year end, but many will, and the rest will go to 2026. When all of the stuff which we build and complete this year comes to the market and is leased, and we are another €165 million of rental income at 10% yield on cost, we are well on the way to hit the €1 billion of annual rent by 2027. That is our target, and we are on schedule to hit that target. A couple of highlights maybe on different markets, what we see good is Czech, stable, we've been here for a long time, it's our home market, good occupancy, good returns. Poland, relatively new for us, largest economy of course in Central Europe, quite important to be there. It's done well, more than we planned, so quite happy with that. Germany, as well we see more demand over the past couple of months, also turned into deals, we signed the lease contracts, which is good. and also makes us positive for the future. Some of you had the opportunity to visit us at our Capital Markets Day in Woepertal in September. So you have also seen our products in Muenheim, Aachen and of course a couple of other places. So it looks like over the past years we have been able to put a team together, we have secured land and permits that we now can go ahead and build those properties and lease them, which we Look forward to doing. Yeah, so we actually think it's just the beginning of CTP. I think it's more complicated probably to come from zero to build 10 or 15 million square meter portfolio than it is to double from 15 to 30 million square meter. Let's see, we have systems in place, we have a fantastic team of people, great relationships with clients but also with the local authority. So actually we look forward to hit that 30 million square meter one day. We target for 2030. Let's see how far we get. So far it looks good. Maybe a couple of things about the new markets. Wanted to talk about Italy, which is another European market, northern Italy, where we have many clients coming from that part of Italy. We now have an opportunity to get started with some projects which we look forward to doing and we hope some of them will already be complete next year in 2026. So that will happen. We think it's a next logical step in the region. We obviously are already active in Germany and Austria and Yeah, in Italy, Northern Italy, we see some good opportunities to introduce our full-service business park concept. We'll start with some smaller projects maybe, but there's also an opportunity to accelerate and to come up with a different entry strategy, similar to what we've done in other countries, Germany and Poland over the past years. And then Asia, we definitely like to have a closer look at the opportunities in Asia as we think our company and our clients don't stop in Europe. They go beyond. They are often global players and they have asked us whether we would be willing to support them in Asia, in Vietnam to be exact, and we have been spending the past 12 months looking at opportunities and we became more positive and enthusiastic about the idea of doing a project in Vietnam. So we expect more to come from that. Don't expect huge things. We will start with one project and maybe do a second. We learn by doing with existing clients, with pre-leases, but definitely some opportunities, a hundred million population, early thirties, average age or young, very productive. with huge FDIs, not only from the consumer electronics industry, but also Lego and Volkswagen Skoda have just opened up a plant or building a plant. So many opportunities we see there, which we want to have a closer look at. Happy to answer any questions. I think I'll hand over to Martin for now with some more details on the financials. And then I'm here later. Thank you very much for your attention.

Moving on to the financial highlights. The like-for-like rental growth came to 4.5% in Q3 2025, while occupancy remained stable at 93%. The net rental income increased 15.4% to €549m, as we continue to reduce our service charge leakage. The NRI to GRI ratio therefore improved to 97.7%, while we also continue to improve our EBITDA margin. Annualized rental income increased to 778 million euros, illustrating the strong cash flow generation of our portfolio. The company-specific adjusted APRA earnings increased by 13.1% year-on-year to 305.2 million euros, while the Group's EPS amounted to 64 euro cents, an increase of 7.2%. Thanks to the deliveries and net development income being back-loaded to the fourth quarter, the Group is on track to reach its guidance for the year. Now looking at the valuation results. For the Q1 and Q3 results, only the investment properties in the development are revalued. Valuation results in the first nine months of the year came to 802 million euros. Of this, 385 million euros was driven by the construction and leasing progress on our developments. But 373 million euros came from the revaluation of our standing portfolio and 43 million euros from our land bank. The total cross-asset value now stands at 17.7 billion euros, up 10.6% from full-year 2024 and 16% year-on-year. CTP's reversionary yields stand at a conservative 7%. And we expect further yield compression and positive EFV growth, in line with inflation or slightly ahead of inflation for the rest of 2025. This is also illustrated by the new leases signed in the first 9 months of 2025. That ends up 6% higher than the new leases signed in the first 9 months of 2024. This is supported by the undersupplied nature of the CE markets and industrial and logistics space per capita is only half compared to the UK or other Western European markets. The transaction markets continue to recover across Europe as there is more clarity around funding costs. We expect an increase of transactions into next year. especially on the private equity side, where funds are coming to maturity. We expect to see more turnover. This will offer opportunities for us. We also remain active in the market for land acquisitions, replenishing the land bank in our existing markets, growing the land bank in countries that we entered recently, like Poland, which we plan to enter, like Italy and Vietnam, while maintaining our disciplined capital allocation. Our APRA net tangible asset per share increased from €18.08 at year end 2024 to €19.98 at the third quarter, representing an increase of 10.5% since the beginning of the year. Year on year the increase was 14%. With this NTA growth and our dividend, we delivered a total accounting return to our shareholders of 70% in the last 12 months, highlighting our superior return profile, which is unique to the real estate sector. And now I hand over to Richard.

Our funding strategy remains centered on maintaining a stable investment grade rating. And we are very happy that our improving credit metrics were recognized by Standard & Poor's with their upgrade in September. We focus on ensuring access to multiple sources of liquidity, meaning attractive funding is available at all times. We have a geographically diversified investor base, now further strengthened by Asian investors added in 2025. and a growing share of unsecured debt towards our target of 80%. Thanks to our highly accretive developments and proactive debt management, our interest coverage ratio increased to 2.5 times. Our normalized net debt to EBITDA remained stable at 9.2 times, and our loan-to-value stood at 45.2%. We expect loan-to-value to return to our 40% to 45% target as our development pipeline is completed and revaluation gains are fully booked. As presented during our Capital Markets Day, with our market-leading development yield on cost of over 10%, every euro we invest in our pipeline increases our ICR and decreases our net debt to EBITDA, allowing us to grow at our 10% to 15% while improving our overall cash flow credit metrics. This was also highlighted by Standard & Poor's on their upgrade of our credit rating to BBB flat with a stable outlook in September. Moody's have a positive outlook on our credit rating, confirming the positive trajectory of our ratings. In the first nine months of 2025, we signed €1.7 billion of unsecured debt to fund their organic growth. This included 1 billion euros in dual-charge bonds issued in March, an inaugural 30 billion yen Samurai loan, equivalent of 185 million euros, and a 500 million euro syndicated term loan facility signed in June, which had commitments of over 1.2 billion euros. Together with the six and a half year, 600 million euro bond we issued in October, this continues to demonstrate our ongoing strong market access. We continue to actively manage our funding costs. And over the past 12 months, we have renegotiated or repaid 1.6 billion euros of our most expensive bank loans. including the prepayment in June of €441 million of expensive unsecured debt. CTP maintains a conservative debt profile. The €272 million of bonds maturing in June and the €185 million maturing in October were both repaid from available cash. Looking ahead, maturities remain limited over the next three years, with a €350 million bond due in January 26 and a €275 million bond in September 26. Our cash position stands at €1.1 billion, including our €1.3 billion RCF. Our liquidity totals €2.4 billion, more than sufficient to meet our cash needs for the next 12 months. The average debt maturity stands at 4.8 years and the average cost of debt at 3.2%. This represents only a minimal increase compared to year-end 2025 as our current marginal cost of funding remains below 3.5% for five-year money. We remain confident in the outlook for CTP. We have a strong tenant lead list. In addition to what we have already pre-let within our development pipeline, we have 151,000 square meters pre-let for future projects for which construction has not yet started. We continue to see rental growth across all of our markets, supported by the nearshoring trend and ongoing e-commerce growth, particularly in the CEE region. Our tenant-led development pipeline remains highly profitable. with our industry-leading yield on cost of over 10%. We are able to deliver sustainable and profitable organic growth, while maintaining a robust financial position. We confirm our EPS guidance of 86 to 88 cents for 2025, which, due to an intended acquisition in Romania not proceeding, is now expected to come in towards the lower end of that range. Thank you for your attention. We now welcome your questions.